The Enlightenment to CHINA from the Investment and Operation of the South Korean PENSION INSURANCE FUND

Abstract

Purpose: The pension insurance fund serves as the lifeline for a majority of Chinese people due to its close connection with people’s personal interests. Method: The increasing severity of becoming an aging society, compounded with the requirement of pre-serving and increasing the value of the basic pension insurance fund, has made the investment and manage-ment of the pension insurance fund especially important. Results: With more than 30 years of experience running a pension insurance fund, South Korea(ROK) has implemented a set of standardized investment policies for pension insurance investment, together with an ac-tuarial mechanism, boasting relatively high transparency in terms of information disclosure. This study analyzes the actual effectiveness of investment policies and operation efficiency of the ROK pension insurance fund. Sub-sequently a summation and assessment of the fundamental features and experiences in its operation and in-vestment are provided. Conclusion: This paper then produces insights and advice on reforming and optimizing the investment and operation of the Chinese pension insurance fund, in hopes that these suggestions can play a positive role in supporting the sustainable, healthy development of the pension insurance fund in China.